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Mitsotakis: Greece submitted request for early repayment of IMF loan

Prime Minister Kyriakos Mitsotakis said Monday that Greece has submitted its request for an early repayment of a chunk of its expensive loan from the International Monetary Fund (IMF), noting that the move “enhances the country's credibility, improves public debt sustainability indicators and saves resources for the Greek state.”

Earlier on Monday, Finance Minister Christos Staikouras signed the letters to be sent to the European Stability Mechanism (ESM) and the European Financial Stability Facility (EFSF), to present the plan for the repayment of 2.9 billion euros (which carries a 5.13 pct interest rate), out of a total of 8.8 billion euros owed to the Fund.

Staikouras said in a statement the move is expected to have “indirect positive impact on the country's credit rating.”

The process is expected to last around two months and, following its completion, the weighted average interest of IMF's loans is expected to fall below 3.0 pct.